Capital gains tax is the tax you pay on the profit from selling an asset — stocks, bonds, real estate, crypto or any other investment. The profit is called a "capital gain" and equals the selling price minus the original purchase price (your "cost basis").
Taxed as ordinary income — same as your salary. Rates from 10% to 37% depending on your total income. The most expensive way to realize gains.
Taxed at preferential rates of 0%, 15% or 20%. Massively lower than short-term rates. Holding an extra day past 1 year can save thousands.
| Tax Rate | Single Filers | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 0% | Up to $48,350 | Up to $96,700 | Up to $64,750 |
| 15% | $48,351–$533,400 | $96,701–$600,050 | $64,751–$566,700 |
| 20% | Over $533,400 | Over $600,050 | Over $566,700 |
If your total taxable income (including the capital gain) stays under $48,350 (single) or $96,700 (married), you pay zero federal tax on long-term capital gains. This is one of the most powerful tax-planning opportunities for early retirees, people in low-income years, or those doing strategic "tax-gain harvesting."
| Tax Bracket | Single Filers | Married Filing Jointly |
|---|---|---|
| 10% | Up to $11,925 | Up to $23,850 |
| 12% | $11,926–$48,475 | $23,851–$96,950 |
| 22% | $48,476–$103,350 | $96,951–$206,700 |
| 24% | $103,351–$197,300 | $206,701–$394,600 |
| 32% | $197,301–$250,525 | $394,601–$501,050 |
| 35% | $250,526–$626,350 | $501,051–$751,600 |
| 37% | Over $626,350 | Over $751,600 |
You bought $50,000 of Tesla stock. It's now worth $80,000 — a $30,000 gain. Here's what you'd pay depending on when you sell:
| Scenario | Holding Period | Tax Rate | Tax Owed | You Keep |
|---|---|---|---|---|
| High earner, sells at 11mo | Short-term | 35% | $10,500 | $69,500 |
| Middle earner, sells at 11mo | Short-term | 22% | $6,600 | $73,400 |
| High earner, waits 1 more month | Long-term | 20% | $6,000 | $74,000 |
| Middle earner, waits 1 more month | Long-term | 15% | $4,500 | $75,500 |
| Lower earner, waits 1 more month | Long-term | 0% | $0 | $80,000 |
Waiting just one more month can save a middle-income earner $2,100 on a $30,000 gain. For a high earner, the savings from short-term to long-term is $4,500 on this single trade.
Enter your purchase price, sale price, holding period and income — get your exact federal tax owed in seconds.
Open Capital Gains Calculator →Real estate has special rules that differ from stocks:
The IRS treats crypto exactly like stocks — every sale, trade, or use of crypto to purchase goods is a taxable event. The same short-term vs long-term rules apply:
| Crypto Action | Taxable? | Tax Type |
|---|---|---|
| Sell crypto for USD | Yes | Capital gains (short or long term) |
| Trade BTC for ETH | Yes | Capital gains on BTC at time of trade |
| Buy crypto with USD | No | Not taxable — establishes cost basis |
| Transfer between your wallets | No | Not taxable |
| Receive crypto as income/mining | Yes | Ordinary income at fair market value |
| Receive crypto as gift | No (recipient) | Inherits giver's cost basis |
| Crypto staking rewards | Yes | Ordinary income when received |
Many crypto investors don't realize that trading one coin for another (BTC → ETH) is a taxable event. You must calculate the gain on the BTC at the moment of the trade. With hundreds of transactions, this gets complex fast. Use a crypto tax tool like Koinly to track all transactions.
You have $10,000 in capital gains from selling Apple stock. You also have $8,000 in unrealized losses on another stock. Selling the losing stock "harvests" the loss — offsetting $8,000 of your gains. You only pay tax on $2,000 instead of $10,000. The IRS wash-sale rule prevents you from immediately repurchasing the same stock within 30 days.
High earners face an additional 3.8% Net Investment Income Tax on top of regular capital gains tax. This applies to:
This means high-earning investors can face 23.8% on long-term gains (20% + 3.8%) or even higher when adding state taxes. California, for example, taxes capital gains as ordinary income — the top combined federal + California rate on long-term gains can exceed 37%.
Stocks · Real estate · Crypto · Short-term vs long-term — all 2026 rates included.
Calculate My Tax →Long-term capital gains rates for 2026 are 0%, 15% or 20% depending on your taxable income. Single filers earning under $48,350 pay 0%. Those earning $48,351–$533,400 pay 15%. High earners above $533,400 pay 20%, plus potentially 3.8% NIIT. Short-term gains are taxed as ordinary income at your regular tax bracket rate (10%–37%).
Yes — in taxable brokerage accounts, selling a security triggers capital gains tax regardless of whether you reinvest the proceeds. The only exception is within tax-advantaged accounts (401k, IRA, Roth IRA) where you can buy and sell freely without triggering taxes until withdrawal.
The main strategies: hold for 1+ year for long-term rates, invest through Roth IRA or 401k for tax-free growth, use tax-loss harvesting to offset gains, and time sales in years with lower income to qualify for the 0% rate. Donating appreciated stock to charity avoids tax entirely.
If you've lived in your home for 2 of the last 5 years, you can exclude up to $250,000 of gain ($500,000 if married filing jointly) from capital gains tax. Any gain above the exclusion is taxed at long-term rates (0%, 15% or 20%). If you haven't met the 2-year rule, the full gain is taxable — at short-term or long-term rates depending on holding period.
No — the IRS treats crypto exactly like property/stocks. Same short-term vs long-term rules apply. However, crypto has more taxable events: every trade between coins, every purchase using crypto, and staking rewards are all taxable. The complexity makes crypto tax tracking significantly harder than stocks. Always use a dedicated crypto tax tool and report all transactions on Form 8949.